Australian Crypto Operator Banxa Fires 40% Of Employees Due To Crypto Winter

Banxa is the latest cryptocurrency company to lay off some staff owing to the bear market, claiming that its crew will be reduced from 250 to 150 personnel.

Banxa, an Australian cryptocurrency operator, expects the current bear market will last at least another year, prompting the company to fire nearly half of its employees.

Banxa had considerable development and grew their staff to 250 individuals as a result of the cryptocurrency bull market in 2021. It also extended beyond Australia, with some of its staff based in Indonesia.

However, as a result of recent adverse market movements, Banxa was forced to implement cost-cutting measures, such as canceling events and decreasing the entire workforce to 150 people.

Following the modifications, the company will concentrate its operations in Australia and the Philippines. It is worth mentioning that European Managing Director Jan Lorenc will also leave the company, putting Banxa’s plans to expand on the Old Continent on hold for the time being.

CEO Holger Arians emphasized to employees in an email that the firm must take “decisive actions to reduce costs now, or else our company will not be able to succeed in the long run.”

“While we have made a number of budget cuts, our employee costs remain too high for us to be able to continue to operate in our current structure … we had hoped to make gradual adjustments to Banxa’s business, but macro conditions accelerated our timeline,” 

Despite the modifications, Arians remains optimistic that his company will emerge as a key infrastructure player in the Web3 ecosystem.  He thinks that  the crypto winter would most likely last another year, while the United States may enter a recession.

Leading cryptocurrency players such as Gemini, Coinbase, and Bybit have also reduced their workforce. The exchange, which is headed by billionaire twins Cameron and Tyler Winklevoss, has announced that it will lay off 10% of its employees.

Coinbase indicated that it will lay off 18% of its overall workforce (about 1,100 employees), whereas Bybit did not specify the amount of layoffs.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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